Spot Bitcoin ETFs in the U.S. Recorded the Highest Inflows in the Last Two Weeks! Here are the Details

Spot Bitcoin ETFs trading in the US recorded an increase in demand on Monday, with net inflows reaching $667.4 million, marking the highest daily total in two weeks. Investors moved to capitalize on the revived base trading and the strong trend of Bitcoin prices.

As Interest in Bitcoin ETFs Rises, Spot Trading Approaches 9% and Signals of Institutional Revitalization are Given

According to data from Farside Investors, approximately 306 million dollars of the inflows went to BlackRock's iShares Bitcoin Trust (IBIT), which boasts a net inflow of 45.9 billion dollars.

The renewed buying interest indicates a sharp turnaround from the cautious atmosphere seen earlier this year, as Bitcoin (BTC) continues to trade above $100,000 for the eleventh consecutive day.

The increasing interest is partly due to the return of basic trading strategies. In this strategy, investors take long positions in spot ETFs on the CME and short positions in futures contracts to achieve risk-free returns.

This return, known on an annual basis, almost doubled last month, approaching 9%, presenting an attractive arbitrage opportunity for institutional investors.

Senior analyst James Van Straten stated, "This base level has now returned to the area attracting professional capital. There has been a significant reversal from returns below 5% observed in April."

CME Bitcoin futures trading volume reached $8.4 billion on Monday, marking the highest level since April 23 and indicating a revival of activity. According to Velo data, open positions increased by more than 30,000 contracts from the lowest level in April to 158,000 BTC.

Both volume and open positions are remaining below the January highs when BTC reached an all-time high of $109,000, while the recent rise indicates significant growth potential.

The expanding base seems to be attracting participants who exited the market earlier in the year. For example, recent 13F reports revealed that the Wisconsin State Retirement Board sold its Bitcoin ETF holdings in the first quarter.

The reason for this decision was likely the decrease in arbitrage opportunities at that time. However, with the current recovery of the base, analysts predict that large investors may return to the market to take advantage of the improving spreads in the second quarter.